Podalic, Inc., has 10% percent coupon bonds on the market with 16 years left to maturity. The bonds make semi-annual payments and have a par value of $1,000. If the bonds have a yield to maturity of 10 percent, what is the price? Select one:

a. $899.31

b. $867.69

c. $1000

d. $825.94

EMKA corporation is going to pay a dividend of $2.6, $3, and $1.2 each year for the next three years. Afterwards, it is planing to increas the dividends at a constant rate of 10% indifinitely. How much should the stock be sold for if the required rate of return is 12%? Select one:

a. $52.54

b. $49.60

c. $50.2

d. $51.64